Recruiting enticements

Tight job market has area companies offering bonuses to existing employees and using other innovative techniques for bringing in new recruits

Posted: Sunday, April 16, 2000

By Ben DeckStaff Writer

s a lullaby announcing a new birth softly flowed through Lee Tracy's office at St. Mary's Hospital recently, Tracy, vice president for nursing services, reflected on a different sort of arrival that is in short supply -- new nurses.

''Shortages of registered nurses are cyclical,'' Tracy said. ''I've seen at least two cycles in 17 years.''

The cycles stem from admissions policies at nursing schools, Tracy said. When there are plenty of nurses to go around, colleges reduce class sizes, and the supply dries up, Tracy said. But this time, the shortage of nurses coincides with a much more broad-based shortage of employees.

The unemployment rate in Athens, which has hovered at about 2 percent since January, is the lowest rate of any metropolitan area in the state, according to Michael Thurmond, commissioner of the Georgia Department of Labor. The statewide unemployment rate is about 4 percent, according to department statistics.

The statewide unemployment rate has been steadily dropping since 1993, when it was 6.5 percent, according to labor department statistics. The low unemployment rate is making it difficult for employers in all sectors of the state economy to find workers, Thurmond said.

''It's an employee's market right now,'' he said.

And employers shouldn't expect relief any time soon. The current labor crunch is due to both the strong U.S. economy and the dropoff of people entering the work force, Thurmond said. The post-World War II baby boom in the U.S. was followed by a baby bust, which is now contributing to the labor shortfall, the labor commissioner said.

Citing demographers, Thurmond said the tight labor market will likely last for another eight years -- whether or not there is a downturn in the economy. The next significant rise in the labor force will come from workers who are currently in middle school, Thurmond added.

Employers in the Athens area are trying a variety of strategies to help lure new employees. Some are offering cash bonuses to existing employees who help bring new staff on board, some are offering extra bonuses and perks for employees, and some are even paying employees to go to school to learn more job skills.

One hard-hit employer in Athens is Superior Pants, a garment manufacturer which employs 400 people.

Pam Cook, human resources coordinator at Superior Pants, recently lamented both the tight labor market and the ''death'' of the sewing industry in the U.S.

''We're just not getting very many applicants,'' she said.

According to the Georgia Department of Labor, garment sewing machine operators will see the largest declines in employment in the next 10 years, with 10,410 jobs disappearing. Textile machine operators will see the second-largest decrease, with 3,250 jobs disappearing.

The declines will be due to factors such as automation, other technological advances and foreign competition, according to the labor department.

Cook said most of the sewing jobs are going to foreign companies. With career prospects so dim, few high school students are studying sewing anymore, she added.

''We're not getting any employees with experience,'' she said.

The plant does offer a $50 bonus to existing employees who refer a new hire, as long as the hire stays at least 90 days, Cook said. But one of the biggest problems in hiring is the pay, she added.

New employees are paid $5.15 an hour until they are up to speed, and then pay jumps to $7.45 an hour, Cook said. Such wages are apparently not very attractive, she said.

''That's one of our biggest problems,'' she said.

But there is more than just salary to consider when trying to attract, employees, Thurmond said. Benefit packages and training will also play a big role in attracting staff, he said.

At the Trus Joist MacMillan plant in Colbert, managers are focusing their efforts on reducing turnover. The plant shreds soft pine into small strands, coats the strands with glue and then binds them together under high pressure and temperature, fusing them into strong wooden beams that are several times stronger than the original wood. The product is used as weight-bearing beams and posts in both home and industrial construction.

The plant is the largest employer in Madison County, with 280 employees. Over the past year, managers have been able to cut turnover by a quarter, from 37 percent to 29 percent, according to John Becker, training coordinator at the plant.

Managers want to get the turnover rate at the plant below 15 percent, because it costs $8,300 in training and lost productivity to replace even an unskilled worker with a year's experience at the plant, Becker said.

Supervisors want to reduce the turnover by working with prospective employees to make sure they understand -- and are comfortable with -- their job, according to Mary Anne Maxwell, human resources coordinator at the plant.

''We're just trying to make it more like a family,'' Maxwell said.

Managers are using both words and actions to foster that family atmosphere. The word ''employee'' is officially banned from official correspondence and from supervisor vocabularies -- all workers are ''associates,'' Maxwell said.

To help make sure prospective associates are comfortable with working at the plant, job interviews include a tour of the area at the plant where the associate would be working and a talk with a supervisor in that area.

In the maintenance and purchasing departments, the interviewing process often includes a group session, where prospective hires talk with their would-be co-workers, Maxwell said. The co-workers can give input on the applicant, but the final hiring decision rests with the department head, Maxwell added.

Trus Joist managers are also trying to discourage workers from ''fence-jumping,'' or switching back and forth between companies just because a different employer may look more attractive at casual glance, Maxwell said. Employees who leave the plant without giving appropriate notice are ineligible from being hired back, she said.

''It's amazing how many people want to come back,'' she added.

And Trus Joist managers have one more avenue they are exploring -- Maxwell made no bones about her desire to lure attract employees away from other local companies with pay and benefits.

With labor in short supply, Trus Joist managers would like to fill openings with people familiar with responsibilities like punctuality and dependability. Such employees can often be found within the ranks of other area employers, and if Trus Joist can lure them to the Colbert plant, so much the better, Maxwell said.

''We need more than just a warm body,'' she said.

At St. Mary's, managers are also trying to cultivate top-notch employees, and the hospital is using existing employees as recruiters.

Existing St. Mary's employees get a $2,000 bonus for referring a registered nurse who is hired by the hospital, and $1,000 for referring a licensed practical nurse, Tracy said.

But there's a catch to help ensure employees refer solid prospects. Only half the bonus is paid up front -- the other half is paid if the new hire stays on at least one year, Tracy said.

The hospital has a staff of 250 registered nurses, not counting the long-term center and the home-health program, Tracy said. On average, 30 of the positions have stayed vacant over the last few years, she added.

To help keep nurses, the hospital also pays ''shift differentials,'' or increases wages for nurses who work the less-desirable overnight shifts, Tracy said.

But the tight labor market has impacted more than just the nursing staff at the hospital. It has been difficult to attract certified nurses' assistants, Tracy said.

To help bolster the ranks of CNAs, hospital supervisors started a training program in conjunction with Athens Area Technical Institute. At the start of the year, the hospital began paying a group of employees who are attending certification classes for the CNA program at Athens Tech, Tracy said.

The employees, who were hired in other capacities at the hospital, are paid both for their time at St. Mary's and for their time in the classroom, Tracy said.

''We almost had to grow our own CNAs,'' she said.

But there are societal benefits from the tight labor market.

Handicapped persons, elderly citizens and young black men -- groups that have all traditionally lagged behind when looking for employment -- are all finding better employment prospects, Thurmond said.

Although the unemployment rate for young black men is still higher than the overall rate, it has dropped significantly. From 1993 to 1998, the statewide unemployment rate for young black men dropped from 12.5 percent to 7.8 percent, Thurmond said. While that rate is still nearly double the overall unemployment rate, it is still heartening to see it drop, Thurmond added.

Many employers are looking to fill their ranks from such untapped labor forces, creating a work place environment that is truly ''lifting all boats,'' Thurmond said.

''It's one of the greatest opportunities of this generation,'' he said.